OMV CAPITAL MARKET STORY August 2018 OMV Aktiengesellschaft
OMV STRONG ASSET BASE 428 kboe/d 1.15 bn boe 17.8 mn t 2.5 mn t 113 TWh 31 TWh Production, 6m/18 Reserves, 2017 Total refining Total petchem Natural gas sales Gas storage capacity capacity volume, 2017 capacity UPSTREAM…
OMV Integrated oil & gas company, geographically focused Clean CCS Operating Result Group capital employed 2017 based on 2017 capital employed plus Abu Dhabi and New Zealand acquisition 40% 20% Upstream 30% 0.9 Fuels MEA 1 +…
Why invest in OMV Integrated and balanced Geographically focused High quality assets and portfolio of Upstream and low-cost Upstream efficient operations and Downstream ensures assets in Downstream financial resilience Strong…
OMVs integrated and balanced portfolio pays off resilient cash generation Cash generation and oil price development 1 EUR bn 3.9 3.3 3.2 3.0 Downstream 99 Upstream 52 54 Oil price 2 44 Corporate 3 2014 2015 2016…
Upstream High-quality portfolio Focused portfolio Production Low production cost 6m/18 split by region, kboe/d USD/boe Australasia MEA 10.6 8.8 7.5 CEE 4+1 core and development regions Russia 428 kboe/d Production…
Downstream Oil European champion Top refiner Secure sales Strong retail Integrated oil outlets brands value chain 50% of refinery 1st quartile European Excellent management production sold through in core markets and in refiner…
Downstream Gas European integrated supplier Integrated Strong Europe gas Reliable portfolio European hub partnerships presence Positioned at the Long-term Integrated along the From North West to center of Europes reliable…
Strong organic free cash flow Organic free cash flow after dividends in 2017 Excluding acquisitions and disposals, EUR bn 3.4 1.2 +1.2 Reshaped and balanced portfolio of Upstream and Downstream assets drive 2.3 cash generation…
OMV 2025 Higher performance and more value ahead Leverage on proven concept of integration Significantly internationalize Upstream and Downstream Build strong gas market presence in Europe Extend record of operational…
Higher-quality Upstream portfolio Focused international player 100% 4+1 600 Reserve core 500 Replacement regions Rate 1 348…
Downstream Oil Further strengthen European position and grow internationally st 1 quartile 1 Shift to higher value products Further increase captive sales volumes Export successful European business model internationally towards…
Downstream Gas Build strong market presence in Europe Leading integrated supplier from North West to South East Europe Monetize increasing equity supply 80% gas to be imported by 2030 Double sales revenues and increase overall…
Continue to grow value Clean CCS Operating Result EUR bn 5 4 Capex Acquisitions Downstream Positive free cash flow after Capex dividends 3 Acquisitions Long term gearing ratio target of 30% Progressive dividend policy…
Maintain resilience Oil price free cash flow break-even 1 After dividends excluding acquisitions and disposals, USD/bbl Generating cash, delivering value 70 Capturing value- Efficient CAPEX accretive growth spending opportunities…
Capital allocation priorities 1 CAPEX ROACE TARGET 2 Acquisitions 12% 3 Dividends Mid- and long-term 4 Debt reduction 20 Capital Market Story, August 2018
Focused investments CAPEX Acquisitions EUR bn EUR bn 2.0 - 2.5 10 2.1 Downstream 8 years 1.8 Upstream 3 years 2015-2017 2018-2025 2015-2017 2018-2025 p.a. p.a. Efficient capital allocation Value adding acquisitions…
M&A criteria focus on cash and value Strategic VALUEcriteria Financial criteria ROACE 12% Strategic fit Cash profile Return profile Balanced Upstream and Free cash flow positive mid-term Defined investment hurdles Downstream…
Strong track record in portfolio management 2018 Expanded Signed basic Acquired share Expanded OMV footprint in agreement on in one of footprint in awarded Libya asset swap largest gas New Zealand 20% share in with Gazprom fields:…
Acquisition of a 20% stake in two offshore fields in Abu Dhabi from ADNOC OMV signed a concession agreement for the acquisition of a 20% stake in two offshore oil fields from ADNOC: Satah Al Razboot (SARB) including the satellite…
Abu Dhabi high-quality assets with substantial cash generation Adding 450 mn bbl to Substantially strengthening OMVs reserves base OMVs reserve base Upside potential from satellite fields 40 kbbl/d long-term Plateau production to be…
Acquisition in New Zealand Major step towards building Australasia into a new core region Acquisition of Shells Upstream business in Adding up to 100 mn boe New Zealand: of recoverable resources Increased stake in Pohokura by 48% and…
Attractive shareholder return Annualized Total shareholder return Last five 2017 Last three years years OMV 61% 39% 18% Peers 1 20% 27% 13% ATX 2 34% 19% 10% FTSEUR1ST 300 OIL & GAS 2 6% 10% 6% FTSE EUROTOP 100 2 9% 6%…
Progressive dividend policy Dividend per share EUR 50% ++50% 1.5 Record dividend of EUR 1.50 per share for 2017 proposed 1.2 We are committed to delivering an attractive and 1.0 predictable shareholder return through the…
Financial priorities and long-term targets Positive free cash flow after dividends Competitive shareholder returns Growing Gearing ratio Clean CCS net income attributable to stockholders 30% Strong investment grade credit…
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Upstream OMV Aktiengesellschaft
Upstream at a Glance 2017 position 348 kboe/d production (6m/18: 428 kboe/d) Norway with an oil and gas split of 52:48 Russia Romania Production cost at USD 8.8/boe (6m/18: USD 7.5/boe) Austria Kazakhstan Bulgaria Kurdistan…
Growing production, lowering cost Production Production cost 1 Kboe/d USD/boe 428 13 Australasia 51 MEA 13.2 348 17 303 311 74 North Sea 18 47 10.6 20 19 23 8.8 71 79 102 Russia 48 7.5 9 211 202 196 188 CEE…
Strengthened reserve base 1P Reserves Reserve Replacement Rate 1P Reserve Replacement Cost Mn boe 3 years RRR, % 1 year , USD/boe 1,146 15 Australasia 1,028 1,030 186 MEA 110 North Sea 116 194 Russia 58 73 70 77 641 CEE…
Upstream strategy 2025 Renew and improve the quality of our asset base Double reserves Extend track record of operational excellence Increase cash generation Higher-quality portfolio generating more cash 36 Capital Market…
Drive production organically and via acquisitions Production growth Kboe/d 600 500 Acquisitions 420 Production cost 348 Organic growth both in 2020 and 2025 e.g. Neptun, Nawara, USD/boe Aasta…
Ensure sustainable reserve replenishment 1P Reserve development Bn boe 2.0 1P Reserves Reserve life years 2x 8-10 1.1 Reserve Replacement Rate Gas share 3 years , % % 100 50 2017 2025 38 Capital Market Story, August…
Exploration: Faster and more disciplined approach Excellent Barents Sea track record Increase size and quality of E&A portfolio Grow in OMV core and development regions Achieve faster monetization of discoveries Apply proven…
Technology drives recovery and reduces downtime Highlights Mean-time-between-failure of producing wells of over 1,900 days (Austria) Reduced number of well interventions per year from over 150,000 to below 6,000 (Romania 1) Low cost…
Transform OMV Upstream into a top digital player Project examples Drilling cockpit for real-time collaboration Latest 3D visualization technology for geological interpretation Machine learning and cloud solutions for seismic data…
Focus on 4+1 regions North Sea Russia CEE Australasia MEA 1 Australia New Zealand OMV Upstream regions Core region CEE Core region North Sea Core region MEA Core region Russia Development region Australasia…
CEE Sustain value generation in Romania and Austria, realize Black Sea potential Presence in CEE Production split 6m/18 Strategic direction Kboe/d 7 27 Maximize profitable recovery Infill drillings, workovers, selected field…
Extensive engineering activities Neptun Deep, Black Sea, Romania Neptun Deep Project Phase: Engineering (pre-FID) Licensees: ExxonMobil (Operator, 50%), OMV Petrom (50%) Domino-1 discovery in 2012 (first offshore deep water…
Russia Build upon huge potential Presence in Russia Production 6m/18 Strategic direction Kboe/d Realize organic growth potential 100 kboe/d from Yuzhno Russkoye over next years 102 Upside from Turonian reservoir layer Russia…
Russia Yuzhno Russkoye and Achimov IV/V provides OMV with stable and sustainable production OMV production contribution from Russian fields 1 Kboe/d 150 100 50 0 2018 2019 2020 2021 2022 2023 2024 2025 Stable production flow for…
Achimov IV/V Asset swap OMVs share of Achimovs IV/V production Binding basic agreement signed development OMV to receive a 24.98% stake in Achimov IV/V blocks, Urengoy Kboe/d natural gas and condensate field 100 Gazprom to receive a…
North Sea Secure long-term sustainable contribution Presence in North Sea Production 6m/18 Strategic direction Kboe/d Bring Aasta Hansteen on stream First gas in Q4 2018 74 Cumulative gas production of up to 43 mn boe Wisting Peak…
Platform successfully anchored Aasta Hansteen, Norwegian Sea, Norway Aasta Hansteen field Project Phase: Execution Licensees: Equinor(Operator, 51%), Wintershall (24%), OMV (15%), ConocoPhillips (10%) Cumulative production of dry gas…
Middle East and Africa Grow and access potential in Middle East & Africa Presence in MEA Production split 6m/18 Strategic direction Kboe/d 5 1 Secure stable contribution Libya 7 Maintain and grow production level 51 8 30 Assess…
Abu Dhabi High-quality assets with substantial cash generation OMV was awarded a 20% stake in two ADNOC offshore oil fields: Satah Al Razboot (SARB) including the satellite fields Bin Nasher and Al Bateel Umm Lulu Commencement of…
OMVs growth project in Tunisia Nawara Nawara field Project Phase: Execution Licensees: OMV (Operator, 50%), ETAP (50%) Cumulative production 1: 40-50 mn boe of gas Production start: expected in 2019 Peak production 1: 10 kboe/d…
Australasia Expand footprint Presence in Australasia Production 6m/18 Strategic direction Kboe/d Realize upside of current position in New Zealand Strong and stable cash generator 13 Highly profitable production New Zealand…
Acquisition in New Zealand Major step towards building Australasia into a new core region Increased stake in Pohokura by 48% and in Maui Adding up to 100 mn boe by 83.75% (31 kboe/d in Jan-Feb 2018) of recoverable resources 60.98%…
Upstream pipeline Development New ventures Exploration Appraisal & Execution MEA Austria Neptun Deep Aasta Hansteen (Norway) SEA Romania deep onshore (Romania, Black Sea) Nawara (Tunisia) Black Sea Wisting Umm Lulu 1/ SARB…
Major projects Development Production Cumulative Peak Working & Execution Project Country Type start production 1 production interest Operated FID primary year mn boe kboe/d % year Aasta Hansteen Norway Gas 2018 43 18 15.0 no 2012…
Strategic partnerships enable access to competitive upstream positions Long-term cooperation along the entire integrated value chain Decade-long cooperation in the Downstream Gas business Access competitive upstream assets (24.98%…
Downstream Downstream OMV Aktiengesellschaft
Downstream Oil in a nutshell Downstream Oil presence 2017 position 17.8 mn t (325 kboe/d) annual refining capacity in Czech Republic 146 Austria, Germany and Romania Slovakia Hungary Romania Moldova 91 187 555 79 2.5 mn t…
Downstream Oil Value Chain 2017 figures Refinery Product supply and Petrochemical/ commercial/ Crude supply production logistics retail sales Purchase of semi- Purchase of Retail finished products 1.5 mn t 1 finished products…
Downstream Gas in a nutshell Downstream Gas presence 2017 position 11 bcm natural gas sales, out of which 70% equity supplied Netherlands 51% share in Gas Connect Austria, the Austrian pipeline operator Germany 2.7 bcm gas storage…
Downstream Gas Value Chain 2017 figures Gas supply Gas logistics Gas marketing sales Equity production in Romania 49 TWh Gas sales to third parties Equity production 113 TWh in Norway 19 TWh Sales in Europe1 57 TWh Equity…
Best in class refinery utilization rate and stable sales Refined product sales Retail sales mn t mn t 10.3 10.4 30.0 30.7 8.1 23.8 OMV Petrol Ofisi OMV Petrol Ofisi divested in June divested in June 2017 2017 20.0 20.1 19.8…
Strong contributor to OMV Group financials Improvement in operations Strong cash flow generator Attractive returns Clean CCS Operating Result, EUR bn Free cash flow, EUR bn 2 Clean CCS RONA 18 in % 1.8 1.7 1.5 0.2 Gas 1.5 14 12%…
Downstream strategy 2025 Europe Downstream Oil: Further strengthen competitive position Downstream Gas: Become the leading integrated supplier with a strong market presence from North West to South East Europe International…
Europe further grow competitive position Cash generator Operational excellence Shift to higher value products Further increase captive sales channels Double gas sales volumes Stringent cost management 67 Capital Market…
OMV will upgrade its European refining assets to market changes European market OMV European production 2016 - 2025 volume 2025 Change 2025 volumes Up to EUR 1 bn planned investments +12% 2.8 mn t for upgrades in 2018 - 2025…
Continuous efforts on operational excellence SCHWECHAT 3 refining sites 1 integrated refinery concept Optimize asset utilization through intermediate product exchanges Increase the share of higher value products with minimum…
OMV Retail strong brands driving value growth OMV Petrom Avanti and Diskont 65% of network 25% of network 10% of network Premium fuels; share in sales doubled since 2012 Most trusted retail brand in Perceived as most Leading shop…
Retail ambitions for the future Profitability turnaround in last 6 years Highly efficient retail stations AT average DE average Operating Result per filling station, EUR 1,000 1 Average throughput per station, mn liters 1 2 RO average…
Strong petrochemicals position in Europe and potential for future growth Production capacity Clean CCS Operating Result petrochemicals Mn t p.a. EUR mn 2.8 300 2.5 Butadiene and 2.3 aromatics 245 1.8 Propylene 109 104 Ethylene…
The share in Borealis is a core asset in OMV Downstream and a basis for further growth Polyolefin production capacity Mn t p.a. Borealis Borealis contribution to 6 in polyolefins globally (incl. 100% of Borouge) OMVs Clean CCS…
OMV will further improve its best in class captive sales volume Refineries Sales Retail sales volume % of refining capacity Equity crude oil processed 25% Captive sales outlets % of refining capacity % 35% 9% 40% 32% 25% 47%…
Europe needs more natural gas EU-28 gas supply and demand Billion cubic meter (bcm) 500 460 40 Increasing European import demand supported by Imports 330 the switch from coal to gas 375 Declining European indigenous production…
OMV aims to double the natural gas sales and build a strong market presence in Europe Nord Stream Yamal-Europe Increase equity gas volumes in Norway, Romania and Russia Nord Stream 2 Urengoy-Uzhgorod Leverage Nord Stream 2 to…
Nord Stream 2: Improvement of energy security in Europe Nord Stream 2 pipeline project Natural gas pipeline from Russia to Europe across the Baltic Sea Nord Stream 1 Russia 55 bcm per year capacity Development starts in 2018 and is…
OMV innovation for future markets Mobility Recycling Electric Hydrogen Gas Plastics to Oil Alternative energies Assets 25 10 56 800 t p.a. EV charging stations in Hydrogen stations CNG stations 1 Pilot plant in Austria OMV…
Develop international Downstream Oil position Export successful European model to growing markets Establish 1-2 core regions outside Europe; MoU with ADNOC Long term Expand petrochemical position Nearly double refining capacity…
The majority of demand growth driven by Asia Development of fuels and petrochemicals demand 2016 to 2030 Mn t +20 +7 +18 1 Europe Russia (60) +320 +32 +70 +12 +15 Americas +210 Middle East +50 Fuel products +18…
Increase in demand triggers substantial capacity additions Global refinery capacity vs. demand 1 Petrochemicals capacity vs. demand Mn t p.a. Mn t p.a. 155 250 145 200 = = 5,400 880 4,950 580 Borouge 25 x Schwechat 35 x…
Strong oil demand required utilization rates above 80% in Asia, Middle East and Russia Europe Russia Middle East Asia Africa 84% 88% 85% 85% 82% 82% 73% 73% Refinery utilization rate 1 65% 61% 2017 - 2030 2017 2030 2017…
Financials OMV Aktiengesellschaft
Financial steering framework Shareholder return and strong rating Value + Cash Focus Strength of balance sheet and Growth in profitability and steady value enhancement adequate liquidity KPIs ROACE/EVA Free cash flow after…
Cost discipline remains an imperative OMVs cost discipline culture New efficiency target 1 Operational efficiency in both Upstream and Downstream 2018 - 2020 Capture economies of scale and strict management of overhead costs…
Funding the growth mid term perspective Sources of cash Uses of cash 3 years cumulative, indicative based on 2018 - 2020, EUR bn 2017 Operating cash flow, EUR bn Cash contribution Disposals and from M&A Gearing cost optimizations 2018…
Cash flow in EUR mn 6m/18 2017 2016 2015 2014 2013 Net income 807 853 (183) (1,255) 527 1,729 Depreciation, amortization and impairments incl. write-ups 932 1,941 3,784 5,153 3,165 2,289 Change in net working capital components 279 (424)…
Strong financial footing Net debt and gearing ratio EUR bn 4.0 Cash position Target long-term EUR bn 1 3.0 gearing ratio 28% 21% 4.0 30% 2.0 14% Undrawn revolving Gearing ratio credit facilities EUR bn 1 Net debt 3.5 1…
Balanced maturity profile Maturity profile 1 Strong investment grade rating EUR bn 1.5 A3 A- Outlook stable Outlook stable 1.0 May 21, 2018 June 7, 2018 Financing costs 2 0.5 2015 2017 0.0 2.45% 2018 2019 2020 2021 2022 2023…
Funding activities of the last years Date of issue Bond 1 Amount in EUR mn Coupon in % Maturity November 2014 Eurobond (XS1138423774) 750 0.60 fix 11/19/2018 November 2013 Eurobond (XS0996734868) 500 1.75 fix 11/25/2019 February 2010…
Diversified international shareholder base Shareholder structure 1 Geographical distribution of 0.3% institutional investors 1 0.2% 9.5% 8% 31.5% 16% 34% Institutional 327.3 mn 27.0% investors shares 27.0% 4% 8% 24.9%…
Sensitivities of OMV Group in 2018 Annual impact 1 Clean CCS Operating Operating cash flow in EUR mn Result 2 Brent oil price (USD +1/bbl) +45 +30 OMV realized gas price (EUR +1/MWh) +125 +95 CEGH/NCG gas price 3 (EUR +1/MWh) +40…
Sustainability
Growth strategy is implemented in a safe, responsible and carbon efficient manner Safety first Carbon efficiency Recognition Carbon intensity Lost Time Process safety GHG emissions per unit Injury Rate events OMV Operations External…
Sustainability at OMV What Sustainability means for us Where we concentrate our efforts Sustainability for OMV means creating long-term value for our customers and Employees HSSE shareholders by being innovative and an employer of…
OMVs Sustainability Focus Areas Focus Areas Commitments Health, Safety, Security and Health, safety, security and environmental protection have top priority in all activities Environment HSSE vision of ZERO harm - NO losses…
ESG 1 performance OMV has in 2017 again achieved a score A- (leadership) for both CDPs Climate Change and Water. This result places OMV among the top 13 companies in the global energy sector in CDP Climate Change. OMV was reconfirmed…
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